International Banking: Second Half 2010 Outlook

Solid Revenues Revenues (TEB) ($ millions) Q2/10 vs. Q2/09 Revenues ■ Net interest income down 2% Negative impact of FX + Asset growth, 2 bps increase in margin ■ Other income up 20% 3,981 3,944 3,673 1,759 1,509 1,815 - 2,164 2,222 2,129 Q2/09 Q1/10 Q2/10 Other Income Net Interest Income (TEB) + Higher securities gains, fewer write-downs + Increase in trading & wealth management revenues Lower securitization revenues vs. record Q2/09 Negative impact of FX Q2/10 vs. Q1/10 Revenues ■ Net interest income down 4% - Shorter quarter - Slight decrease in margin ■ Other income up 3% + Higher securities gains + Stronger trading & wealth management revenues - Lower underwriting & transaction-based fees - Negative impact of FX Scotiabank Disciplined Expense Management Non-Interest Expenses ($ millions) Q2/10 vs. Q2/09 Expenses " Expenses up 4% 2,009 1,967 1,886 1,024 1,187 1,143 379 371 360 483 451 464 Q2/09 Q1/10 " Higher performance & stock-based compensation Increase in advertising & promotion spending Impact of acquisitions + Positive impact of FX Q2/10 - Salaries & employee benefits ■Premises & technology Other Scotiabank Q2/10 vs. Q1/10 Expenses Expenses down 2% + Lower stock-based compensation + Positive impact of FX & shorter quarter Higher performance-based compensation 7 8

View entire presentation